How to compress video files in iPhoto library

Hi, I have captured many mov clips using my panasonic LX1 cam which have been downloaded automatically to the iPhoto library, which is fine. But a 3 minute clip hoggles up about 300mb in the format it comes from the camera, and I would like to compress them to save HD space using high quality h.264.

My problem: how to do this witout risking messing with the iPhoto library. If I change the files iPhoto links to, wont I end up with a bunch of broken links? Whats the best way to do this?

I would say import the file to iMovie and than export it back out, delete the orignal video from your iPhoto Library and than import your new file from iMovie into iPhoto and it should (if your settings are set up from default) save the clip into your iPhoto library folder

Edit: Just to be clear about this;
iPhoto's default settings have all your pictures and videos and everything saved neatly into the iPhoto Library Folder in your Pictures folder of your home directory. When the default settings are intact anything you import into iPhoto automatically gets copied/saved into that iPhoto Library Folder and its pretty hard to mess with anything in there unless you know exactly what you are doing. Same thing happens with iTunes..

MacRumors attracts a broad audience
of both consumers and professionals interested in
the latest technologies and products. We also boast an active community focused on
purchasing decisions and technical aspects of the iPhone, iPod, iPad, and Mac platforms.